Northland Capital Markets Remains Bullish Following Advanced Micro Devices' (AMD) 4Q Results and 1Q Guide
Northland Capital Markets reiterated an Outperform rating and $5.00 price target on Advanced Micro Devices (NASDAQ: AMD) following the company's 4Q earnings report. AMD reported ($0.10) on $958M, in line with consensus of a loss of ($0.10) on $954M. AMD provided weak guidance for Q1, but guided revenue up for the year. Further, AMD guided Q1 down 14%, much weaker than our estimated 8% organic decline for Intel. AMD cited weak seasonal demand for its gaming products in addition to weakness in China.
Analyst Gus Richard commented, "AMD reported an in line quarter, improved balance sheet metrics and increased annual guidance, but provided weak guidance for Q1. AMD is demonstrating an improved ability to deliver on new products, however, those products will not impact the P&L until 2H. While we continue to get confirmation that AMD is executing, given AMD’s history most investors remain skeptical. Further, we are confident in the new management and believe AMD’s IP is worth more than its EV. Maintain Outperform and $5 PT."
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Shares of AMD closed at $1.95 yesterday.